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UK retailer warns AI and automation could cut jobs by two-thirds in three years
The chief executive of one of Britain's largest online retailers has warned that artificial intelligence (AI) and automation will reduce his workforce by two-thirds within three years, citing rising government-imposed costs as a key driver of the shift.
Nick Glynne, CEO of Huddersfield-based Buy It Direct-which owns brands like Appliances Direct and Furniture 123-told BBC 5 Live's Wake Up To Money that hiring prospects in the UK were "very bleak" for his business. The company currently employs over 800 staff in the UK and 150 overseas, with customer service operations in the Philippines.
Government policies accelerate job cuts
Glynne attributed the accelerated push toward automation to recent tax increases, including higher national living wage and national insurance contributions, which took effect in April. While not a "fixed plan," he projected that within three years, the company would need two-thirds fewer employees-both in office and warehouse roles-to maintain the same revenue and activity levels.
"A mixture of AI on the office side, and technology involving robots and automation in the warehouse, means the future for employing UK people is very bleak for someone like us," he said. The company is investing in AI for administrative tasks and robotic systems for warehouse operations to offset labor costs.
Government defends tax policies as 'pro-business'
A spokesperson for HM Treasury countered that the government remained "pro-business," highlighting a corporation tax cap of 25%, business rate reforms, and trade agreements with the US, EU, and India. The spokesperson argued that tax decisions from last year's Budget had enabled investments in public priorities, including the NHS and wage increases for millions.
"The tax decisions we took at the Budget last year mean that we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting waiting lists and putting more money in their pockets with a wage boost for millions."
HM Treasury spokesperson
Outsourcing shifts to overseas senior roles
Glynne revealed that higher taxes had also prompted the company to relocate senior positions abroad, including accountants, managers, traders, and IT staff. He described the move as an "experiment" that had largely succeeded, noting that overseas workers were "just as qualified" and often "more motivated" due to lower labor protections and costs in their home countries.
"You look at many of the roles overseas... there's less protection for people often in those countries [where] we buy in cheaper labor," he said.
Broader concerns over AI-driven job losses
The warning comes amid growing unease about AI displacing jobs, particularly entry-level roles. Graduates in fields like graphic design and computer science have reported increased competition with AI tools for positions. Last month, Amazon announced 14,000 job cuts, citing a need to operate "more leanly" to capitalize on AI opportunities.
Key projections at a glance
- Current UK workforce: 800+ employees
- Projected reduction: Two-thirds fewer staff in offices and warehouses within three years
- Overseas workforce: 150 employees, including senior roles in accounting, IT, and management
- Drivers: Higher national living wage, national insurance contributions, and automation investments
